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You are cordially invited to attend as we sponsor: 

 

Cannon Estate Planning Teleconference 

 

*CLE credits may be available*

Gift Tax on Trust Modification?

CCA 202352018 - IRS' Shot Across the Bow! 

Tuesday, March 5, 2024

1:00-2:30 PM

Trust modifications have proliferated over the past couple of decades -- largely as a result of the promulgation on the Uniform Trust Code. Now, however, the IRS has given perhaps its most aggressive signal yet that it wants to stop, or at least dramatically slow, the trust modification train. Chief Counsel Advice (CCA) 202352018, released on December 29, 2023, dispels any doubt that the IRS believes trust modifications that alter beneficial interests have gift tax consequences. Coming from the office of the top lawyer at the IRS, this CCA is significant and likely a precursor of where the IRS will focus a large part of its gift tax enforcement efforts going forward. In light of the CCA, Trustees and those who counsel Trustees would be well-advised to be extra-careful in designing and implementing trust modifications -- lest they cause an unexpected and unpleasant gift tax result. 

 In this webinar, we will closely examine and analyze the facts postulated in the CCA, the conclusion reached and how to engineer trust modifications in the future. In particular, we'll consider the following: 

  • Does the modification described in the CCA effectuate a value shift cognizable under the gift tax law? 
  • If there is, in fact, a gift, who are the donors? 
  •  Can mere acquiescence to a trust modification be a gift? 
  •  Monumental challenges in valuing a gift arising as a result of trust modification 
  • Are there available counterarguments and/or work-arounds?


Register Now

PLEASE NOTE: Cannon has changed the format of their teleconferences and the option for participants to listen remotely is no longer available. You must attend in-person at our office located at 1000 Elm St, Suite 400, Manchester, NH 03101. Lunch will be provided. 


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